Listing Details - Well Established Supplier of Equipment & Furniture to School Systems

Well Established Supplier of Equipment & Furniture to School Systems ()

New England - New Hampshire, Hillsborough

Seller Financing: Yes
Lender Pre-Qualified: No
Listing ID: 74855
Status: Active

Listing Details

Listed Price: $1,000,000
Down Payment: $700,000
Total Sales: $4,589,245
SDE: $585,565
EBIT:
EBITDA:
FFE: $69,422 Included? Yes
Real Estate: Included?
Inventory: Included?
A/R: $896,639 Included? No
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Contact Information
ROI Corporation
549 Columbian St Suite 200
Weymouth Massachusetts 02190
Office: 781.682.6209
Fax: 781.682.6217
Email: grayberg@roibusinessbrokers.com
www.roibusinessbrokers.com
Send Email To Agent
Reason for Sale: Owners retiring within one year.
Training: Eight weeks at 0 additional cost.
Financing Terms: $300,000 at 5% over 36 months.

Operations

Year Established: 1992
Last Acquired:
Form of Ownership: Sub S Corp.
Home Based: No
Relocatable: Yes
Type of Location: Office Building
Absentee Owner: No
Online: No
Employees: Full Time: 3 / Part Time: 2
Managers: 2
Hours: M - F, 8AM - 5PM
Owner Hours: 40
Non-Owner Payroll: $70,735
Franchise Info:

Location

Lease Expire: 12/31/2011
Option: 2 years
Lease Terms:
Lease Security:
Monthly Rent: $817
Square Footage: 1400
Facilities: Ownership enjoys a strong relationship with its landlord, which has proven to be flexible in times of needing more or less space. The current lease expires 12/31/11, but a one-year renewal with a one-year option to renew is currently being explored.

Summary

Business Description: This distributor sells furniture and equipment to the K - 12 market, covering every aspect of schools with the exception of kitchens and gyms. Coming off a great year in 2011, there are many opportunities to build on recent successes, including building a sales team & culture and starting a social media marketing strategy where none currently exists. The company has outstanding contracts with a half-dozen manufacturers, affording it first crack at certain jobs and significant discounts.
Historical Summary: It boasts a stellar reputation over its 20-year history for remarkable follow-through and customer service.
Owner Qualifications: The current partnership focuses almost exclusively on sales and administration and no licenses are required. Ownership is busiest when schools are closed to allow time for installations, which are sub-contracted out. As most of their clients operate on a June 30th year-end calendar, the summer months tend to be the most active for ownership, with time taken off typically in the Spring and Fall.
Competition: Competitors are generally regional with a couple with a more national reach. One of the company's strengths lies in its ability to build solid relationships with the manufacturers it represents which leads to access to pre-arranged discounts. The company does lose some bids when price is the only issue of concern as it works hard to earn higher prices in exchange for unmatched service.
Potential Growth: The company was once staffed with six salespeople that provided more blanket coverage of New England. With the two partners approaching retirement age, it was decided to scale back a bit during the recent recession, and that has led to a leaner, more efficient operation. Between growing the sales team to its former size and beyond and implementing a social media strategy, there are many opportunities to grow sales in New England and then perhaps on a national basis.